NASD Notice to Members 01-30 - May 2001

Member Obligations to Provide Statistical Information About Order Routing Under Rule 11Ac1-6 of the Securities Exchange Act of 1934

Executive Summary

Rule 11Ac1-6 under the Securities Exchange Act of 1934 (Exchange Act) requires all broker/dealers that route customer orders in equity and option securities to make publicly available quarterly reports that disclose the venues to which it routes non-directed orders in certain covered securities. The Rule further requires broker/dealers to disclose the nature of any relationship they have with those venues, including any payment for order flow arrangements. Finally, the Rule requires broker/dealers to disclose, upon customer request, the venues to which individual orders were sent for execution. The compliance date for the Rule is July 2, 2001.

 

Please note that this is a Securities and Exchange Commission (SEC) rule. Accordingly, questions of interpretation or other concerns about the Rule should be directed to the SEC. However, members may direct general questions concerning this Notice to Kathleen O'Mara, Assistant General Counsel, or Philip Shaikun, Assistant General Counsel, Office of General Counsel, NASD Regulation, Inc., at (202) 728-8071.